Chick v Grosfeld [2012] NSWSC 1166

Chick v Grosfeld [2012] NSWSC 1166

Mr Grosfeld committed serious breaches of duty by mixing estate funds with personal funds without authorisation, making undocumented loans to himself, concealing transactions in accounts, and drawing remuneration in advance for work not yet performed. These breaches demonstrated that he was not a fit and proper person to continue as executor or trustee, and that the estate had been put into jeopardy. Accordingly, the grant of probate to Mr Grosfeld was revoked and letters of administration with the will annexed were ordered to be granted to the NSW Trustee and Guardian.

Parties
Plaintiff: Murray Chick; Defendant: Johannes Theodorus Grosfeld
Jurisdiction
Australia
Judgment Date
25 September 2012
Procedural Posture
Application for Removal of Executor / Principal Judgment; Grant of Probate Revocation and Appointment of New Administrator
Outcome
Grant of probate to Mr Grosfeld revoked; grant of letters of administration with will annexed to NSW Trustee and Guardian; issues on remuneration adjourned for further hearing.
Legal Topics
Removal of Executor, Mismanagement of Estate, Executor Remuneration, Appointment of Administrator, Trustee Charges
Wills Probate and Administration Removal of Executor Mismanagement of Estate Executor Remuneration Appointment of Administrator Trustee Charges

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Parties

Murray Chick

Plaintiff

Johannes Theodorus Grosfeld

Defendant

Procedural Posture

Application for Removal of Executor / Principal Judgment; Grant of Probate Revocation and Appointment of New Administrator

Legal Issues

  1. 1 Whether Mr Grosfeld was a fit and proper person to act as executor and trustee of the estate
  2. 2 Whether Mr Grosfeld mismanaged the estate’s affairs
  3. 3 Whether charges and remuneration taken by Mr Grosfeld were excessive or unauthorised

Ratio Decidendi

Mr Grosfeld committed serious breaches of duty by mixing estate funds with personal funds without authorisation, making undocumented loans to himself, concealing transactions in accounts, and drawing remuneration in advance for work not yet performed. These breaches demonstrated that he was not a fit and proper person to continue as executor or trustee, and that the estate had been put into jeopardy. Accordingly, the grant of probate to Mr Grosfeld was revoked and letters of administration with the will annexed were ordered to be granted to the NSW Trustee and Guardian.

Court Disposition

Grant of probate to Mr Grosfeld revoked; grant of letters of administration with will annexed to NSW Trustee and Guardian; issues on remuneration adjourned for further hearing.

Orders

  • Grant of probate of 5 March 2009 to Mr Grosfeld revoked.
  • Letters of administration with the will annexed to be made to NSW Trustee and Guardian pursuant to NSW Trustee and Guardian Act 2009 s 22.